Mobile Commerce Payment System with Unique Encryption Circuit
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Solution Overview
Problem
Existing mobile commerce systems face security issues with unencrypted credit or debit card information transmission during online payments, leading to inadequate security and inefficiencies in processing transactions, particularly due to the need for batch processing and complex integration with payment engines and financial switches.
Innovation Solution
A mobile commerce system equipped with a unique electronic identification and processing circuit, such as a SIM card, enables real-time financial transactions by using a mobile payment application to encrypt and transmit payment instructions directly to a financial institution, eliminating the need for intermediaries and reducing code duplication, and allowing for real-time transaction processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If credit card or debit card information is transmitted during mobile commerce transactions, then payment functionality is enabled, but security is compromised due to unencrypted transmission
Solution Approach 1:
The patent introduces a mobile commerce provider as an intermediary that hosts a payment engine on its backend server. This intermediary manages the encryption keys and cryptographic operations centrally, eliminating the need for individual mobile devices to store and manage encryption keys. The payment engine acts as a mediator between the mobile device and financial institutions, handling secure key management while enabling encrypted payment transactions.
2Productivity
If mobile devices integrate payment engine functionality, then transaction capability is improved, but device processing burden and code duplication increase
Solution Approach 1:
The patent extracts the payment engine functionality from individual mobile devices and relocates it to a centralized backend server hosted by the mobile commerce provider. This extraction removes the burden of maintaining payment processing code on resource-constrained mobile devices, eliminating code duplication across multiple devices, and centralizing the processing capability while still enabling transactions through the mobile interface.
3Reliability
If transactions are processed through traditional financial switches, then payment finalization is achieved, but real-time processing is prevented due to batch processing requirements
Solution Approach 1:
The patent implements preliminary action by having the payment engine on the backend server prepare and pre-process payment instructions before they reach traditional financial switches. The system can initiate transactions and receive authorization in real-time through the centralized payment engine, which then batches transactions for final clearing through traditional financial switches. This allows real-time transaction initiation and tracking while still utilizing established batch processing infrastructure for final settlement.
Data Source
AI summary
A mobile commerce system and components thereof are provided in which multiple wireless mobile communications devices (mobile devices) (1) each has a unique electronic identification and processing circuit (2) capable of encrypting data utilizing an encryption key and a first software application providing connectivity to commercial webpage servers (4) for purposes that include the conduct of selected transactions involving a payment for goods or services. Each mobile device is independently enabled to conduct financial transactions in real time by communication with a financial institution. Each mobile device further has a second software application termed mobile payment application adapted to interact with the first application to receive data as to a payment required to conclude a transaction conducted by way of a commercial webpage server. The mobile payment application initiates an instruction to the financial institution to make a payment to a payee designated by way of such data wherein the instruction is encrypted utilizing the unique electronic identification and processing circuit.